Articles in Category: FHA Guidelines

March 18, 2019

How Do I Refinance My Home Loan?

Are you planning to buy your first home and wondering about your refinance loan options later down the line? Do you already own a home you need to refinance? There is good news for you; refinancing with an FHA mortgage can help you get into a lower mortgage payment, get out of an adjustable rate mortgage, or even renovate your house. What does it take to refinance a home loan with an FHA mortgage? Choose The Refinance Loan You Need There are several FHA refinance loan options. If you need to remodel or repair your home at the same time you refinance, you can apply for an FHA 203(k) rehab loan that provides funds for approved upgrades and improvements. But the FHA rehab refinance loan (which is also available as | more...

March 15, 2019

FHA Home Loan Approval Rules You Should Know

By Bruce Reichstein

If you are a first-time home buyer or have never used an FHA home loan before, there are some rules about FHA mortgages you should know before getting started. FHA Home Loan Approval Depends On More Than Your Credit Score It’s easy to fixate on credit scores and they are a major part of what your lender will use to determine a borrower’s creditworthiness. But it’s not the only criteria. Your income, employment, and credit habits will all be examined at home loan application time. FHA loan rules specifically require the lender to verify two years of employment, and that employment does not have to be with the same company. The rules also require your lender to determine that your income is likely to continue. But this is possible even | more...

March 8, 2019

FHA Home Loan Down Payment Assistance Rules You Need To Know Now

By Joe Wallace

FHA home loan rules allow down payment assistance for the mortgage for both first time buyers and experienced house hunters alike. There are down payment assistance programs for first-time borrowers, there are down payment gift funds that can be provided by family, friends, or employers…but all of these are subject to FHA loan rules. FHA Home Loan Down Payment Assistance Rules HUD 4000.1 says down payment assistance cannot come from any entity or party that has a stake in the outcome of the home loan sale or the approval of the mortgage loan. That includes: -The seller of the Property; -Any other person or Entity who financially benefits from the transaction (directly or indirectly); or Anyone who is or will be reimbursed, directly or indirectly, by any party included in | more...

February 28, 2019

FHA Home Loan Answers For First-Time Borrowers

By Joe Wallace

First-time borrowers have many questions about FHA home loans. Here are some common questions and the basic answers, which should give you plenty to discuss with a lender when the time is right. What do you need to know about an FHA home loan? Can I Earn Too Much Money To Qualify For An FHA Mortgage? FHA loans do not have an income cap and these mortgages are not need-based loans. First-time home buyers may have financial constraints such as a tight budget and a need to save money up front on the transaction, and the FHA loan program is designed to help such borrowers with lower down payment requirements and the ability to finance certain closing costs. Do I Have To Live In The Home I Buy With An | more...

February 21, 2019

FHA Home Loans And Qualifying Income: Disability Benefits

By Joe Wallace

When you apply for an FHA home loan to buy real estate, your lender will need to verify your income and employment. Some borrowers may wish to submit disability income for consideration but aren’t sure if that income will qualify. FHA loan rules address these concerns; HUD 4000.1 instructs the lender how to verify disability income, and defines how disability income may qualify. According to HUD 4000.1, the lender is required to “verify and document the Borrower’s receipt of benefits from the SSA, VA, or private disability insurance provider. The Mortgagee must obtain documentation that establishes award benefits to the Borrower. “ What Disqualifies Disability Income From Consideration For An FHA Home Loan If the borrower’s disability income has an expiration date within three years from the date of the | more...

February 5, 2019

FHA Home Loan Approval For First-Time Home Buyers

By Joe Wallace

What should you know about FHA home loan approval? Buying a first home or a larger property after purchasing a starter home with an FHA mortgage can be less stressful if you remember a few important things right at the start. FHA Home Loans Require A (Lower) Down Payment FHA mortgage loans require a minimum of 3.5% down. Compare that with other mortgage loans such as a conventional mortgage, or other government backed mortgage loans such as the USDA program. Yes, when you do research on USDA loans, you will find a no-down payment option offered to some qualified borrowers. But USDA loans are need-based, and FHA home loans are not. Any financially qualified borrower can apply for an FHA loan if they intend to use the house they buy | more...

January 16, 2019

Government First-Time Home Buyer Programs

By Joe Wallace

Many first-time home buyers want to know if there are government programs for those who have never purchased a home before. FHA home loans often get included into this category and it’s true; FHA mortgages are good for those buying a first home. FHA loan limits have increased for two years in a row at the time of this writing, there are lower FHA FICO score requirements and lower down payment requirements for FHA loans that make them a good option to explore when shopping for your first home and your first real estate loan. But FHA mortgages are not specifically intended for first-time buyers. You do not have to be a new house hunter to apply. That said, FHA mortgages for a starter home, first home, or for a | more...

January 8, 2019

Buying A Home With An FHA Loan After A Short Sale

By Joe Wallace

A short sale is essentially the sale of a home that is still being paid for, where the property sells for less than the amount owed. The lienholder(s) agree to write off the remainder and forgive the deficiency. Borrowers who sell short are often taking measures to avoid foreclosure on the mortgage, but not all of the short sale transactions that happen are on mortgages that have fallen into delinquency. Short sales happen in many circumstances but one common scenario involves a homeowner who is suffering from an underwater mortgage and is trying to cut their losses. Getting An FHA Loan After A Short Sale Is it possible to buy a home with an FHA mortgage loan after a short sale? The short answer is yes. Buying a home with | more...

December 27, 2018

FHA Loans For Single Homeowners

By Joe Wallace

Data from the 2017 American Community Survey, conducted by the U.S. Census Bureau, suggests that single women homeowners own 22 percent of American homes compared to single men’s 13 percent. These stats may not mean much to the typical first-time home buyer, but it’s an interesting bit of data that could indicate a growing trend in home ownership. Single home owners in general-men or women-can benefit greatly from an FHA loan with the lower down payment requirement and more forgiving credit score minimums. It’s easy to assume you might not qualify for a home loan as a single person, but is that the reality? Single men and single women, as demographics, are not as simple as the labels imply. Some may be single parents, some may have roommates or cost-sharing | more...

Home Buying, FHA Loans, And Mortgage Trends

December 12, 2018

Questions To Ask About Buying A Home With An FHA Mortgage

By Joe Wallace

Thinking of buying a home with a mortgage loan? FHA mortgages have options you should think seriously about-and not just for the purposes of buying the home and moving in. What Options Do I Have To Make A Lower Down Payment On My FHA Loan? This question is best answered depending on why it’s asked; are you in need of lower out-of-pocket expenses for your mortgage or do you need to know what FICO scores will let you qualify for a lower down payment? Down payment assistance programs may be available from third-party agencies in your housing market. As long as these down payment programs meet FHA standards and state law, an FHA borrower may apply for them. The FHA itself does not offer down payment assistance. Borrowers may also | more...